Yen gains on concern BOJ will disappoint

Jobs Reports

The Dollar Index fell 1% to 82.822.

Roseland, New Jersey-based ADP Research Institute reported a 158,000-job increase in employment by companies, the smallest since October, after a revised 237,000 gain the prior month. The median forecast of 39 economists surveyed by Bloomberg called for a 200,000 advance.

The data came two days before the Labor Department issues its report on U.S. nonfarm payrolls. Employers added 198,000 jobs in March, economists surveyed by Bloomberg forecast. Payrolls increased by 236,000 in February, more than forecast.

IMF Managing Director Christine Lagarde announced a staff- level agreement with Cyprus today on the 10 billion-euro program agreed to on March 25. The deal calls for Cyprus to restructure its two largest banks, reduce budget deficits and adjust its wage and pension systems.

“This is a challenging program that will require great efforts from the Cypriot population,” Lagarde said in a statement. “We believe that it provides a durable and fully financed solution to the underlying problems facing Cyprus and provides a sustainable path toward a recovery.”

ECB Meeting

The euro weakened 1.8% over the past month among the 10 developed-nation currencies tracked by Bloomberg Correlation- Weighted Indexes, the worst performance. The dollar fell 0.3% and the yen gained 0.2%.

The European Central Bank’s Governing Council meets tomorrow to decide on interest rates. Of 56 economists surveyed by Bloomberg News, 54 expect the central bank to keep its main refinancing rate at a record-low 0.75%, while two predict a reduction.

“There is some euro bearishness ahead of the ECB,” said Raghav Subbarao, a currency strategist at Barclays Plc in London. “Cyclical data has been extremely weak and European growth prospects look dim compared to the rest of the world.”

Bloomberg News

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